Biomass for Energy Generation: Environmental Issues

Ricardo Cavalcanti Furtado Environmental Planning Manager Empresa de Pesquisa Energética

Porto, September 23 rd , 2009

Empresa de Pesquisa Energética Government-owned company, linked to the Ministry of Mines and Energy, instituted by Law n° 10.847/2004 EPE has been created to develop studies and research to support the energy sector planning in the areas of electric energy, oil and natural gas and its derivatives, mineral coal, renewable energy sources and energy efficiency

Energy Planning in Brazil

Brazilian Power Sector Planning

HIGH PROPORTION OF HYDRO POWER LONG TRANSMISSION LINES INTENSIVE CAPITAL LONG TERM INVESTMENTS HIGH UNCERTANTIES MULTIPLE OBJECTIVES COMPLEMENTARY GENERATION SEASONALITY ENVIRONMENTAL ISSUES RISK ANALYSIS FAIR TARIFF DIVERSITY INTEGRATION ENERGY SECURITY

Planning Process

STRATEGY VIEW LONG TERM STUDIES (30 YEARS AHEAD) NATIONAL ENERGY PLANNING NATIONAL ENERGY OUTLOOK PROGRAMMING VIEW SHORT AND MEDIUM TERM STUDIES (10 YEARS AHEAD) TEN YEAR ENERGY PLANNING AUCTIONS Crude Oil and Natural Gas Electric Power Transmission Biofuels

250 200 150 100 50

Scenarios for Electricity 2030 (GW)

100,5

7,9 GW

142,1 224,9

Imports + Other Biomass Wind Small Hydro Other thermal Coal Nuclear Natural Gas Large Hydro Power Plants

0 2005

Source: PNE 2030

2015

Year

2030

Energy in Brazil – Energy Sources Share

World 13% OECD 7%

Renewable Sources Share

87% 93% Brazil 46% 54% 0% 10% 20% 30% Renewable Non-renewable 40% 50% 60% 70% 80% 90% 100%

Source: National Energy Balance. EPE, 2008

Energy in Brazil – Energy Sources Share

Natural Gas; 9,29% Coal & coal derived; 5,99% Sugarcane products; 15,88%

Ethanol Bagasse Straw Vehicles Cogeneration

Wood & charcoal; 11,99%

Charcoal consumed by blast furnaces.

Oil & oil derived; 37,36% Nuclear; 1,40%

Source: National Energy Balance. EPE, 2008

Hydro; 14,89%

Existing System

Transmission Lines

Planned System - 2017

Biomass

Biomass participation in the Energy Auctions Auction

2005 A3/2006 A5/2006 Alternative Sources/2007 A3/2007 A5/2007 Biomass/2008 (Stock Auction) A5/2008

Total Plants

25 25 29 12 50 34 31 1

207 Power (MW)

766 967 1.104

214 1.555

1.046

2.379

114

8.144

Environmental Information Analysis in the auctions  Plant carachteristics   Environmental licensing Reserve of water availability and allowance for water use

The ethanol/sugar production chain

Main environmental issues: • • • • • • • • Food competition Land use on expansion areas Energy Balance Emissions Solid waste Liquid effluents Water consumption Employment (quantity and quality)

Current sugarcane production and expansion perspectives Year

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sugarcane (Mt)

553 609 677

Ethanol (billion liters)

14 29,2 33,5

Amazon

84,8 90 80 70 60 734 7,9 50 800 40 871 929

Savanna

30 20 985 1029 1075 Crop area (M ha) Acumulated expansion (%) 10 0 63,9

Pantanal

7,9 0 8,7

Mata Atlântica

Crop area (M ha)

Source: EPE, 2009 based on Municipal Agricultural Research developed by IBGE 2006

Acumulated expansion (%)

•

Where to expand?

The National Agro-ecologic Zoning for the sugarcane harvesting will determine the most appropriate areas to expand the sugarcane production (under development – coming soon ) – – – Soil Climate Environmental issues

Agroecologic zoning - SP

• It’s desirable that the expansion occurs on non productive areas such as abandoned crop fields and pasture areas Example of Agro-ecologic zoning developed by SP Government (2008) Suitable Suitable with environmental limitations Suitable with environmental constraints inappropriate

Food competition

• Sugarcane can be considered as food (sugar and other products), but the part destined to ethanol (today ~55%) doesn’t compete with this purpose • Some (INPE/CANASAT), have found that the last 4-year expansion studies, based occurred on mainly satellite over images consolidated agriculture and pasture areas • The production of grains, rice, fruits (almost all) has increased continuously • Currently, in Brazil, the sugarcane production does not influence food prices

•

Energy Balance

The sugarcane provides one of the best energy balances in bioethanol production • The energy “Output/Input” sugarcane ethanol = 8.1

index in the Life Cycle of • The bagasse cogeneration ensures the energy self consumption (power, mechanic and thermal) in the sugar/ethanol plants • The power excess can be sold for the Interconnected System (Auctions)

•

Emissions

In Brazil, ethanol (hydrous and anhydrous) substitutes a great amount of gasoline consumption. As consequence, even taking into account the life cycle emissions, it avoids significant amounts of GHG emissions • The use of biofuels also reduces the SO x , particulates and VOC emissions in comparison with gasoline and diesel • Burning of straw in the field facilitates manual sugarcane picking. However it causes air a pollution schedule to in regional scale. Recently, regulation and agreements established gradually mechanize the sugarcane picking

Solid waste and liquid effluents

• Technically, bagasse and straw can be considered as co-products of sugarcane production. Both can be used for energetic purposes.

Part of the straw is also important for soil covering • Currently, the vinasse (high BOD) produced is destined for the crop field in substitution for chemical fertilizers • Other liquid effluents can be easily treated before released on the environment (rivers)

Vinasse sluice - Usina Coruripe, AL

• •

Water consumption

In Brazil, sugarcane harvesting doesn’t need irrigation. However, sugar/ethanol plants consume a significant amount of water Water consumption – 1997 = 5,0 m 3 – /t.sc

national average – 2008 = 1,0 – 2,0 m 3 /t.sc

– New plants = 0,7 – 1,0 m 3 /t.sc

Sugarcane washing

• The water availability is one of the main environmental constraints on new plants licensing, particularly in the Southeast Region

Employment

• Sugarcane manual picking requires a large number of workers.

However, these jobs are extremely exhaustive and don’t need schooling (low level income) • • The mechanization of sugarcane picking will certainly reduce the number of jobs in the sector. This will create better jobs (salubrity and level income)

Sugarcane manual picking

There are public and private initiatives to regulate the social aspects international goal of sugar/ethanol production chain in Brazil. An certification system could guarantee this

Other possibilites in bioenergy

• Increasing the use of sugarcane straw in cogeneration • Ligno-celullose ethanol • Biogas from sewage, biodigestors and landfill • Woodchips and agriculture scraps • Elephantgrass for power generation • Biodiesel from vegetable oil, fried oil, tallow and other fatty raw materials

•

Conclusions

Today, biomass power generation predominantly sugarcane bagasse as fuel in Brazil uses • Sugarcane bagasse is a co-product of the sugar/ethanol production chain • Currently, the sugarcane production does not affect the Amazon and Pantanal areas • The expansion areas for sugarcane will be determined by the Agro-ecologic Zoning • The Brazilian sugar/ethanol industry manages the most of environmental impacts in sugar/ethanol production chain • Brazil has a great potential on bioenergy

Ricardo Cavalcanti Furtado Superintendente de Meio Ambiente Empresa de Pesquisa Energética www.epe.gov.br